Why Most CTV Contextual Targeting Is a Waste — And What to Do Instead

Thanks to the increasingly privacy-focused landscape, contextual targeting is making a comeback.

But even with today’s AI-powered contextual advertising capabilities, many marketers are left overpaying for wasted impressions. This is because most content-based targeting tactics assume a direct link between what’s playing on the TV screen and the intent of those viewers.

Say you’re an auto dealer investing thousands in Connected TV (CTV) advertising. Your ads run during car-related content, but conversions don’t match expectations. Meanwhile, your in-market buyers aren’t watching car shows on their streaming service — they're actively browsing Autotrader.com, comparing models on Kelley Blue Book, and reading reviews on Cars.com.

Marketers continue to struggle with the limitations of traditional content-based targeting for this very reason. Contextual relevance is great. But simply serving ads that align with what’s being watched misses the critical link between viewer interests and buying intent.

Just because someone watches a cooking show on CTV doesn’t mean they’re actively shopping for organic ingredients. Likewise, serving car ads during an automotive program is mostly a shot in the dark — are those viewers actually in the market for a vehicle, or just casual car enthusiasts?

But what if you could reach viewers who’d demonstrated a strong interest in your product category by engaging with lower-funnel content that indicated they’re genuinely interested in making a purchase? Imagine reaching the users browning Autotrader and Kelley Blue Book on their living room TV.

This is the promise of Smart Audience Contextual Targeting —  a more precise way to reach in-market buyers on connected TV (CTV).

What Is Smart Audience Contextual Targeting?

Smart Audience Contextual Targeting is an intelligent way to find in-market buyers based on their browsing behavior. Unlike traditional contextual targeting — which aligns ad campaigns with the on-screen content — this tactic identifies users who have recently engaged with content that signals real purchase intent.

In this way, it combines the promise of content-based targeting (identifying specific genres that your target audience is likely to consume) with that of audience targeting (identifying people more likely to purchase your product).

This approach delivers better relevance, less waste, and stronger performance by ensuring ads reach audiences when they’re most engaged with a category — not just passively watching related content.

How Smart Audience Contextual Targeting Works

Smart Audience Contextual Targeting uses vertical-specific websites to identify reach consumers who are actively engaging with a given product category. Data scientists curate these audiences based on data points gathered from browsing behaviors. As such, this strategy is built on high-intent browsing behavior rather than passive viewing preference.

Audiences are built by identifying users who have demonstrated a high level of engagement with relevant online content (e.g., visiting specific websites) within a given timeframe. For instance, someone who has viewed related content three times in the last 30 days would be placed into a Smart Audience.

Benefits of Smart Audience Contextual Targeting

We designed this solution to combine the broad reach of connected TV (CTV) advertising with the audience precision of programmatic advertising. Some key features of Smart Audience Contextual Targeting from Strategus include:

• Intent-driven audiences: Users qualify based on engagement with highly visited, ad-supported websites within a given vertical.
  
  
• Real-time relevance: Unlike third-party audience segments, these audiences refresh regularly to ensure better data reliability.
  
  
• Privacy-compliant: No reliance on personal identifiers like cookies — just contextual relevance based on content consumption.
  
  
• More precision = less waste: Instead of making assumptions about user buying potential based on what’s playing on their screen, this strategy focuses on the products they’re actively researching.
  
  

Smart Audience Contextual Targeting Across Industries

While the mechanics of Smart Audience Contextual Targeting are compelling, the real value lies in how it applies to different industries.

For example:

• A home improvement company could connect with consumers actively researching renovation ideas, reading DIY guides, or comparing appliance models. The old way would target viewers of home makeover shows; this way ensures that ads are only served to those viewers in the actual process of making home improvements.
  
  
• A travel brand could reach consumers actively researching flights, hotels, or destination guides. This would ensure they reach people actively planning a trip, not just those dreaming about one while watching the Travel channel.
  
  
• A financial services provider could connect with consumers exploring mortgage rates, comparing credit card offers, or reading investment advice. Instead of targeting finance-related news audiences, this method focuses on those actively making financial decisions.

Example Audiences and Data Sources

Target Smarter With Strategus

Traditional contextual targeting falls short because it assumes content consumption equals buying intent. That simply isn’t the case, which results in ad waste. 

To truly maximize your CTV investment, you need to reach viewers who aren't just watching, but actively engaging with content that demonstrates purchase intent. Smart Audience Contextual Targeting from Strategus does just that.

By aligning ad delivery with genuine purchase signals, this approach drives better return on ad spend (ROAS) across industries — from travel and finance to home improvement and beyond.

Are you ready to make your CTV campaigns work smarter, not harder? Contact us today.